Question about medical expenses

4

4inarooms

Guest
Hi all.
Just for clarification, I wanted to ask about the refund on medical expenses reclaimed through the MED1 form. As I pay a proportion of my salary at the 41% tax rate, should I be receiving 41% of all of my expenses, ie, if my expenses amounted to €1000, I would receive a refund of €410?

Basically, I claimed some expenses and they have refunded an amount that I can't work out from the claim (ie, it's not 41% and it's not 20%)

Any help appreciated
 
For 2008 and earlier years if you have insufficient income chargeable at the 41% rate then the proportion of medical expenses relating to that would be relieved at 41%, the remainder would be at 20%.

Example
Total Income €44,000
Comprising income taxable at 41% €2,000
and income taxable at 20% €42,000
Then if you have medical expenses of €5,000, €2,000 would be relieved at 41% and €3,000 at 20% giving a refund of €1,420
 
You will not have any problem from this year on as the lower rate only applies apart from nursing home outlay
 
Graham_07 said:
For 2008 and earlier years if you have insufficient income chargeable at the 41% rate then the proportion of medical expenses relating to that would be relieved at 41%, the remainder would be at 20%.

Example
Total Income €44,000
Comprising income taxable at 41% €2,000
and income taxable at 20% €42,000
Then if you have medical expenses of €5,000, €2,000 would be relieved at 41% and €3,000 at 20% giving a refund of €1,420
Click to expand...

Cheers, that's pretty clear. Basically, about 20 grand of my salary is charged at the 41% rate and the expenses were only €1500, so that would suggest that all €1500 would be at 41%. The wierd part is that they seem to have paid me about 62% of the claim (ie, more than I expected). As I haven't had the balancing form yet (P21?) I'm thinking they either made mistake or that I actually overpaid income tax last year and they are refunding the whole lot at the same time as balancing everything
 
Correct as regards the expenses all being at 41%. If you overpaid otherwise in addition to the medical expenses then the whole would be reflected in the Balancing Satement (P21)
 
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